Class 2 is the fluency year
In Class 1 the job was decoding - turning letters into sounds and sounds into words. In Class 2 the job changes. The child already knows how to work a word out; now she has to do it fast enough that the sentence still makes sense by the time she reaches the full stop.
NIPUN Bharat, the Government of India's foundational literacy and numeracy mission, puts a number on this. Its stated goal for Grade 2 is that a child should read with meaning at 45 to 60 words per minute from an age-appropriate text she has not seen before. The two conditions in that sentence are the whole point: with meaning, and unknown text. A child who reads the school reader at speed because she has heard it forty times is not fluent - she is remembering.
This is easy to check at home and takes one minute. Pick a book she has not read, set a timer, and count the words she reads correctly in sixty seconds. Then ask her what happened in what she just read. Speed without comprehension is not the target; comprehension at a crawl is not either.